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[Economic Survey] Ch13: Poverty Line Estimation- Tendulkar vs Rangarajan, Engels

Law, MNREGA, Aajeevikaa, Urban Livelihood

1. Prologue
2. Poverty line
1. Tendu Leopard vs Ranga Khush
2. Urban Poverty line
3. Rural Poverty line
4. Why Ranga NAA-KHUSH (unhappy)?
5. How is 100 million poors increased?
6. Calorie Expenditure
7. Engels law & MPCE
3. Centrally sponsored schemes (CSS)
4. CSS classification
5. Poverty removal schemes
1. Scheme#1: MNREGA Act 2005
1. MNREGA performance
2. MNREGA Reforms already taken
3. MNREGA: Economic Survey observations
2. Scheme #2: NRLM / Aajeevika
3. Scheme #3: National Urban Livelihood mission
links will be updated once I finish last (first) part on UNDP HDI-2014 report.
Poverty line
Q. Who decides Poverty line?
Page 1 of 9 Mrunal Economic Survey: Poverty line Rangarajan, MNREGA, Aajeevika, NULM
Planning commission
Q. o does it decide overty line?
Monthly per capita Expenditure.
Suresh Tendulkar designed its Formula.
Q. Who rovides the d t o onthly endit re?
NSS- National sample survey organization
under Ministry of Statistics and Programme Implementation
Tendulkars poverty line
re Monthly endit re er erson s.
Rural 816
Urban 1000
According to Tendulkar formula, poverty has declined, as seen in following graph:
Mugup the value of Total poors (wise) & in crores
No. of Poors in India
(Tendulkar Method)
end l r
Poor 37.2 21.9
Poor Cr. 41 27
Time for stupid census ranking:
State wise (Ref. Economic Survey 2013 page 238)
i hest r r l overty o est overty
1. tie: Odisha, MP
2. Bihar
3. Assam
1. Kerala (7.1%)
2. Himachal (8.1)
3. Punjab (8.3)
hi hest r r l ne loy ent hi hest r n ne loy ent
1. Kerala 1. Bihar
Page 2 of 9 Mrunal Economic Survey: Poverty line Rangarajan, MNREGA, Aajeevika, NULM
2. Assam
3. Bihar
4. W
.lowest in Gujarat (3/1000)
2. W
3. Andhra
4. Haryana
.lowest in Gujarat (34/1000)
Tendu Leopard vs Ranga Khush
Earlier Committees: Alagh 77, Lakdawala 89
o ittees end l r . n r n
Set up by Planning commission Planning commission
Set up in 2005 2012, May
Submitted report 2009 2014, uly
Poverty estimation
Monthly per CAPITA
Monthly Expenditure of family of
Urban Poverty line
r n overty line s end l r . n r n
per day per person 33 46.9047
per person per month 1000* 1407
per family of five, per month 5000 7035
*this is their official recommendation. Rest numbers are derived .
Rural Poverty line
r l overty line s end l r . n r n
per day per person 27 32
per person per month 816* 972
per family of five, per month 4080 4860*
*these are the official numbers recommended by them. Remaining figures are derived.
Why Ranga NAA-KHUSH (unhappy)?
Q. Why is n nh y ith o rn lists nd olitici ns? n or the n tion in
Page 3 of 9 Mrunal Economic Survey: Poverty line Rangarajan, MNREGA, Aajeevika, NULM
Villain Ranga (oginder) is unhappy because mainstream Bollywood directors also making vulgar movies
& item-songs, thereby affecting his SUSTAINLE Livelihood
C. Rangarajan has received lot of negative publicity because:
He kept poverty line to be ridiculously low Rs.32 for rural and Rs.47 for Urban.
Therefore He is insensitive towards the poor.
But Ranga never gave those daily numbers. He had given combined poverty line for a
family of five members- Rs.7035, which is a plausible number. After all, if you live in a
family of five, then some costs will get reduced per head (e.g. rent, lightbill, LPG etc.)
Besides, if a family spending 7000 per month = their income would be definitely above
7000. So in reality, Ranga has not insulted the poor. Infact, He has tried to cover more
poor under BPL & Sarkaari schemes.
Media has derived those insensitive daily Expenditure figures (Rs.33, Rs.47) by dividing
the monthly Expenditure of five people, then further dividing that number by 30.
If you objectively convert Rangas poverty line into purchasing power parity (PPP), its
$2.44 per person, per day. And that figure even higher than World bank estimate Thus,
Ranga included more poor in BPL, than even World bank would
Thus, journalists and politicians have misinterpreted the poverty line issue- just like they
misinterpreted Anti-CSAT movement to be against those e sy n lish M Qs above
Decision Making section
How is 100 million poors increased?
Since Ranga raised poverty line, obviously more people would become below poverty line .
Page 4 of 9 Mrunal Economic Survey: Poverty line Rangarajan, MNREGA, Aajeevika, NULM
why does Hindu keep saying 100 million poors added?
Poverty in India: ear 2011
or l o P in crores
Tendu 27
Ranga 37
difference 10 crore = 100 million PL increased.
anyways moving on
Calorie Expenditure
end l r . n r n
only calorific value in Expenditure Calorie +Protein fat. Explained below
In the Indian economy books writing during Adam Smiths time, youd have read poverty line =
2400 calorie in Rural areas and 2100 calorie in Urban areas. That was Lakdawalla Committee
lorie d n
Rural 2400 2155
Urban 2100 2090
Observe that Ranga reduced the calorie reuirement- why?
Because ICMR study report said so. esides, over the years use of machinery and vehicles
has increased, so todays generation doesnt require that much calorie . esides, laborers
can get extra energy by chewing calorie-free Gutkha .
Ranga also included
Expenditure on protein &
gms / day Rural Urban
Protein 48 50
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Tendulkar C.Rangarajan

Engels law MPCE

area Average MPCEHighest in food Expenditure

Engels law says:

Centrally sponsored schemes (CSS)


Area nion tates

CSS classi ication

Poverty removal schemes

Scheme 1: MNREGA Act 00

year M REA wages CP A

M REA perforane

BET orst

M REA Refors already taken

M REA: Eonoi urvey oservations


Scheme : NRLM Aajeevika

Eonoi urvey oservation:

Aajiveeka: udget 01

oan interest rate Before after

Scheme 3: National Urban Livelihood mission

tendulkar line poverty h survey http:runal.orgeonoi
nru.htl aajeevika nrega law engels rangarajan